CSLB Sends a Message to Unlicensed Contractors in Santa Rosa

SACRAMENTO – A few phone calls by undercover investigators this week in Santa Rosa proved how easy it can be to find unlicensed contractors illegally trying to get work. A sting operation conducted by the Contractors State License Board (CSLB) on May, 19, 2015, resulted in 11 individuals being cited on misdemeanor illegal contracting charges.

Investigators from CSLB’s Statewide Investigative Fraud Team (SWIFT), with the help of the Sonoma County District Attorney’s Office, conducted the sting in a single-family home near Santa Rosa Junior College. SWIFT investigators used craigslist.org, local newspaper advertisements, and business cards to identify suspected illegal contractors in the area and invited them to submit bids for jobs that included fencing, concrete, and landscaping.

Prior to submitting a bid for concrete, one of the offenders disclosed to a SWIFT investigator that the average price for that job would cost about $14,500, if done by a licensed contractor. Since the suspect was unlicensed, he offered a lower bid of $3,600 to complete the job.

“Unlicensed contractors often turn in very low bids to undercut the competition, but homeowners take big risks if they fall into that trap,” said CSLB Registrar Cindi Christenson. “Contractors without proper training have the potential to create bigger issues. They often find ways to add additional costs along the way and it isn’t uncommon for projects to get completely abandoned.”

Eleven suspects turned in bids in excess of the limit allowed by state contracting laws. Any project that is $500 or more in labor and/or material costs must be performed by a state-licensed contractor, per Business and Professions Code section 7028. The bids ranged from $1,250 for removing 10 trees to $18,000 for a 270-foot stretch of redwood fencing.

First-conviction penalties for contracting without a license include up to six months in jail and/or up to $5,000 in fines. A second conviction can carry a mandatory sentence of up to 90 days in jail. Penalties are more severe with each successive violation.

All suspects were cited for contracting without a license, and 10 of these suspects are facing an additional charge of illegal advertising (Business and Professions Code section 7027.1). State law prohibits unlicensed contractors from advertising for construction-related work valued at $500 or more, although they can advertise for jobs below that amount if the ad states that they are not licensed.

Each suspect has a court date on July 22, 2015, at 8:30 a.m. in Sonoma County Superior Court, 600 Administrative Drive, Santa Rosa, CA 95403. (MAP)

CSLB encourages consumers to always “Check The License First” by visiting www.cslb.ca.gov or calling its toll-free automated line: 800.321.CSLB (2752). Also, visit CSLB’s website for tips about how to hire a contractor and to sign up for CSLB Email Alerts.

The Contractors State License Board operates under the umbrella of the California Department of Consumer Affairs. CSLB licenses and regulates about 290,000 contractors in California, and is regarded as one of the leading consumer protection agencies in the United States. In fiscal year 2013-14, CSLB helped recover nearly $51 million in ordered restitution for consumers.

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